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prisoha [69]
3 years ago
6

A notice is published stating that RMO 5% convertible preferred stock will be called at $60 per share. The preferred is converti

ble into 1/2 share of common and is selling in the market at $56 per share. RMO common stock is selling in the market at $110 per share. After the notice appears, the price of the preferred stock will most likely trade in the market at: _________.
Business
1 answer:
dybincka [34]3 years ago
6 0

Answer: d. A price near $60

Explanation:

The Preferred Stock was selling at $56 then a notice was circulated that RMO would be calling the stock at a price of $60.

This $60 is more than the current $56 and so this will need to reflect in the price of the stock. The adjustment will cause the Preferred stock to start trading near $60 as traders will seek to take advantage of the impending call by buying at a lower price and thus making a bit of profit when the stock is called at $60. The market will adjust to this because the Preferred stock will be perceived as undervalued. A price closer to the Call price will therefore become the new price to properly value the stock.

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Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income stateme
Serhud [2]

Answer:

$636,364

Explanation:

Calculation to determine what The break-even point for Gardner Corporation for the current year is

First step is to calculate the Variable costs

Variable costs = $250,000 + $150,000 + $75,000 + $200,000

Variable costs = $675,000

Second step is to calculate the Contribution margin ratio

Contribution margin ratio = (Sales - Variable costs) / Sales

Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000

Contribution margin ratio= 0.55*100

Contribution margin ratio = 55%

Now let calculate the Break-even point

Break-even point = Fixed costs / Contribution margin ratio

Break-even point= ($100,000 + $250,000) / 0.55

Break-even point = $636,364

Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364

6 0
3 years ago
A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t
Zigmanuir [339]
Let
z----------------- > Price Elasticity
x----------------- > % Change in Quantity
y----------------- > % Change in Price

we Know that

Price Elasticity = (% Change in Quantity) / (% Change in Price)----> z=x/y

z=-2
y=-10%
x= <span>?
</span>z=x/y---------------- > x=z*y=(-2)*(-10)=20 %
% Change in Quantity=20%
Part A) how many pizzas will he sell if he cuts his price by 10%?
He will sell (500 +20 %)----------> 500*1.2=600 pizzas per week

the answer part A is 600 pizzas per week

Part B) <span>how will his revenue be affected?
<span>initial revenue per week
</span>500 pizzas*</span><span>$20 =$10000

final revenue per week
(500 pizzas+20%) *(</span>$20-10%)=600 pizzas*$18=$10800
$10800-$10000=$800
<span>
the answer part B is
His revenue </span><span>will increase  $800 per week</span>

4 0
3 years ago
Christina buys groceries every month from Target and rarely does much research on the products she buys. What is the marketing t
Neporo4naja [7]

People do have preference. Routine response behavior is the marketing term for this type of consumer behavior.

<h3>What is consumer behavior?</h3>

Consumer behavior is known to be the study of how people, customers, groups, etc., often select, buy, or use goods, and services to answer to their needs and wants.

Routine Response is also known as Programmed Behavior. Here one is buying low cost items and as such one do not need much search and decision effort.

Learn more about  consumer behavior from

brainly.com/question/1364759

5 0
3 years ago
Can we tell from this information whether aggregate expenditure was higher or lower than GDP during this​ quarter? If​ not, what
Firlakuza [10]

Answer:B

Explanation:

6 0
3 years ago
Read 2 more answers
What channel intermediary does not take title to products, but instead brings a seller and buyer together?.
kondaur [170]

Answer:

It would be the agent by definition.

4 0
2 years ago
Read 2 more answers
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